Optibase Cuts 2Q Loss on Reduced Revenues

HERZLIYA, ISRAEL: Optibase, a video compression specialist, reported a $1 million loss for the second quarter on revenues down 42 percent compared to a year ago. Optibase (NASDAQ:OBAS) generated $3.3 million in revenues for the three months ending June 30, 2009, compared to $5.7 million in 2Q08. Net loss was $1 million compared to a $2.1 million loss a year ago.

Revenues for the first six months of 2009 totaled $6.9 million, compared with $9.8 million a year earlier. Net income for the period was $1.9 million compared to a net loss of $5 million in 2008.

As of June 30, 2009, Optibase had cash, cash equivalents, and other financial investments, net, of $38 million, and shareholder equity of $37 million, compared with $28.8 million, and $38 million as of March 31, 2009.

“Our second quarter results reflect the continued effects of a slowing economy which contributed to lower revenue and the associated decline in earnings,” Commenting on the quarter, CFO of Optibase, Amir Philips, said. “We continue to keep an eye on expenses and have been diligent in that regard.”

Philips noted that guidance was difficult.

“Our visibility into upcoming quarters remains challenging as we approach the one-year anniversary of the start of this negative economic environment,” he said. “As a meaningful recovery appears to be some way off, our focus continues to be on running our business efficiently and controlling our overhead. In addition, we still have a substantial cash balance at our disposal to explore various businesses opportunities that this market downturn has created.”

Previous TVB coverage of Optibase:
May 12, 2009: “Optibase Posts 1Q Profit”
Video compression specialist Optibase ended the first quarter of 2009 with net income of $2.9 million, or around 18 cents a share, on revenues of $3.6 million. During 1Q08, Optibase (NASDAQ: OBAS) posted a net loss of $2.9 million, or 21 cents a share, on $4 million in revenues.

February 26, 2009: “Optibase Revenues Fall”
Optibase 4Q08 revenues dipped by more than one-third compared to the year-earlier quarter. The Israeli video compressor posted revenues of $3.6 million for the three months ending Dec. 31, 2008, compared to $5.6 million for 4Q07. Net loss for the quarter came in at $2.5 million compared to a net loss of $1.7 million 4Q07.